Today, I want to talk about the recent market trends, especially regarding Ethereum (ETH). Recently, Ethereum's performance has been truly exciting, just 200 points away from its all-time high, exactly as I had been looking forward to, watching it step by step reach this position.
Ethereum has exploded, what positive factors are behind it?
The reasons for this wave of increase are evident to everyone; several important factors have combined to drive up ETH.
1. Institutional funds entering the market: Recently, not only U.S. stock companies but also large institutions like MicroStrategy have increased their investments in ETH. Just this week, over 2 million Ethereum have been acquired by these large institutions. The influx of funds undoubtedly provides strong support for ETH.
2. CPI data and interest rate cut expectations: The CPI data released last night performed quite well, and the market generally expects the Federal Reserve to cut interest rates in September, which has brought stronger confidence to the market. People are starting to discuss whether the rate cut will be 25BP or 50BP. In any case, the market sentiment has already been ignited.
Can the rise of ETH continue?
In the short term, the upward momentum of Ethereum remains strong. Personally, I believe that as long as there are no sudden negative news, ETH still has room for growth in the short term. Of course, everyone might have a concern—will institutions and whales suddenly sell off at some point, causing a market crash?
From the current situation, I think the likelihood of this happening in the short term is low. Because considering various data and macro trends, ETH is still relatively safe for the next 1-3 months. We can still expect it to continue to rise.
September interest rate cut, the market may be reignited again.
If the Federal Reserve really cuts interest rates by 50BP in September, it could become an important catalyst to push ETH prices further up and drive the overall market sentiment. So, even though Ethereum has risen more than twice since April, it still remains a very promising investment choice.
However, that being said, the market has become somewhat overheated, and many people have started to chase the rise. Therefore, in this case, I advise everyone not to blindly follow the trend and chase high prices. We need to learn to trade in waves, find the right timing to enter, and avoid chasing prices to the top.
Pay attention to the upcoming data releases, which may bring volatility.
Tomorrow evening (August 14) at 20:30, the U.S. unemployment claims data will be released, and speeches from Federal Reserve officials may also trigger market volatility. Everyone needs to pay close attention to this information, as it may bring significant price fluctuations in the short term.
Simple technical analysis.
The current key support level for ETH is around 4574, and the resistance is in the range of 4690-4725. If these resistance levels are broken, prices may continue to rise.
The current support level is around 120,786, and the resistance level is at 118,619. Everyone can pay attention to the changes in these key price points.
